Gerresheimer Invests Up to $94 Million in US Production Facility

Gerresheimer AG recently announced investments to rapidly expand its manufacturing, supply, and logistics capability for glass vials in the US. The project will be supported by the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) at the US Department of Health and Human Services (HHS) with contracting support from the Department of Defense (DOD). It will expand Gerresheimer’s capacity by new vial forming lines, including dimensional inspection, annealing, cosmetic inspection, and packaging. BARDA has agreed to provide up to approximately $66 million to Gerresheimer AG for this project. The investment is part of Gerresheimer’s global expansion plan and follows its formula G strategy process.

Under the agreement, Gerresheimer will increase its annual production capacity in Morganton, NC, with interchangeable Type 1 vials (glass borosilicate and/or aluminosilicate) and Gx Elite Glass Vials capability. BARDA’s financing, with contracting support from the DOD’s Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) and the Army Contracting Command (ACC), will strengthen the capabilities in the US to respond to current and future public health emergencies. The vials can be used in vaccination campaigns against infectious diseases, such as COVID-19 and others. This expansion of the facility will further strengthen Gerresheimer’s leading market position in best-in-class elite vials.

“Gerresheimer is honored to support the US government in strengthening its pharmaceutical supply chain for current and future healthcare emergencies,” said Dietmar Siemssen, CEO of Gerresheimer AG. “The agreement confirms our role as a supplier of system critical products, such as pharmaceutical primary packaging solutions and drug delivery systems for the healthcare sector. This investment follows our strategy process formula G and accelerates our growth in this important market.”

As part of the project, the existing facility in North Carolina will be enlarged by the installation of new vial forming lines and a new warehouse. As the investment will lead to an increase in the number of people employed, new offices will also be part of the expansion plan.

The company is committed to sourcing the vast majority of its raw materials from US domestic suppliers in order to enhance the levels of responsiveness, dependability, quality, and domestic supply chain integration. Gerresheimer is furthermore incorporating sustainable design principles to implement energy efficiency measures, comply with storm water management requirements and reduce waste for the upgrades and expansion.

Gerresheimer is the global partner for pharmaceutics, biotech, healthcare, and cosmetics with a very broad product range for pharmaceutical and cosmetic packaging solutions and drug delivery systems. The company is an innovative solution provider from concept to delivery of the end product. Gerresheimer achieves its ambitious goals through a high level of innovative strength, industrial competence and concentration on quality and customer focus. In developing innovative and sustainable solutions, Gerresheimer relies on a comprehensive international network with numerous innovation and production centers in Europe, America, and Asia. Gerresheimer produces close to its customers worldwide with around 11,000 employees and generated annual revenues in 2021 of around EUR 1.5b. With its products and solutions, Gerresheimer plays an essential role in people’s health and well-being.

Disclaimer

1. The Army Contracting Command – Aberdeen Proving Ground – Joint COVID Response Division, 6472 Integrity Court, Building 4401, Aberdeen Proving Ground MD 21005-3013 is the awarding and administering acquisition office.
2. This project has been supported in whole or in part with federal funds from the U.S. Department of Health and Human Services; Office of the Assistant Secretary for Preparedness and Response; Biomedical Advanced Research and Development Authority (BARDA), under agreement number W58P05-22-2-0008.